1. Region V Conference MDE Hot Topics
Deb Meier| Education Specialist 2
Molly Koppes| Education Specialist 2
March 21, 2019
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2. Ten Minnesota Commitments to Equity
Prioritize equity.
Start from within.
Measure what matters.
Go local.
Follow the money.
Start early.
Monitor implementation of standards.
Value people.
Improve conditions for learning.
Give students options.
Ten Minnesota Commitments to Equity

3. Agenda FY 2019 UFARS Code Updates
FY 2019 and FY 2020 UFARS Coding Guidance
FY 2020 GASB 84 Update
FY 2019 Fund Balance Reminders
UFARS Data Submissions
UFARS Turnaround Reports Review – FY 2018
MDE Website
5/22/2019

4. FY 2019 UFARS Codes Updates
5/22/2019

5. FY 2019 UFARS Program Codes
Update Program Code: Program Code 867 – Long-Term Facilities Maintenance (LTFM) Projects that are $2,000,000 or More per Site and bond financed (Fund 6) Updated description: Record the expenditures related to the project that are bond financed. New Program Code: Program Code Long-Term Facilities Maintenance (LTFM) Projects that are $2,000,000 or More per Site and financed on a pay-as-you-go basis (Fund 6) New description: Record the expenditures related to the project that are financed on a pay-as- you-go basis.
5/22/2019

6. FY 2019 UFARS Program Codes
Program Codes 867 and 868 These program codes should be used when LTFM projects are financed by bonds or on a pay-as- you-go basis when the entire project is $2,000,000 of more per site. A project that is $2,000,000 or more per site must be coded to Program 867 or 868 depending upon the funding source. Example 1: if a project at Building A is $3,000,000 and $2,000,000 is funded by bonds and $1,000,000 is funded by pay-as-you-go – the bond expenditures should be coded to Program Code 867, while the remaining pay-as-you-go expenditures should be coded to Program Code 868. Example 2: If a project at Building B is $2,000,000 and $1,500,000 is funded by bonds and $500,000 is funded by pay-as-you-go – the bond expenditures should be coded to Program Code 867, while the remaining pay-as-you-go expenditures should be coded to Program Code 868.
5/22/2019

7. FY 2019 UFARS Finance Code 309
Finance Code 309 Basic Skills for Extended Time
Record revenues and expenditures pertaining to the Basic Skills Extended Time Revenue of Minnesota Statutes, section 126C.10, Subdivision 3(d). This includes EL program expenditures and Compensatory Education expenditures as defined by Minnesota Statutes, section 126C.15, Subdivision 1. Expenditures using this code must be in the list of permitted expenditures contained in the above statute. Of the amount of this revenue percent for fiscal year 2018, 3.5 percent for fiscal year 2019, and for fiscal year 2020 and later, 3.5 percent plus the percentage change in the formula allowance from fiscal year 2019, must be used for extended time activities under subdivision 2a, paragraph (c).The activities in this code apply to Balance Sheet Code 459, Restricted/Reserved for Basic Skills Extended Time. Use Finance Code 317, Basic Skills, for all other basic skills expenditures.
Every district must set aside the 3.5 percent for FY Charter Schools are exempt.
5/22/2019

8. FY 2019 UFARS Finance Code Addition
Add Finance Code 433, Title IV – Student Support and Academic Enrichment (CFDA )
Use Program Code 206, Title IV, Part A – Student Support and Academic Enrichment (CFDA ) (updated title)
Allowed Object Codes: 110, 120, , , , 199, , 299, , 315, , 350, 360, , 389, 393, , 401, , , , 461, 470, , 530, , 820 and 895
5/22/2019

9. FY 2019 UFARS Finance Code 795
Finance Code 795 Capital Projects Levy
This finance code utilizes the same law 126C.10, subd. 14 as Operating Capital, Finance Code Therefore, the Chapter 10 grids were updated for FY 2018 and thereafter to reflect Finance Code Verify that you are using the funds appropriately.
To see the permitted code combinations for Finance Code 302 compared to M.S C.10, subd. 14 please see Chapter 10, page 8.
5/22/2019

10. FY 2019 UFARS Finance Code Update
UFARS Finance Code and Balance Sheet Combinations has been added to the end of the FY 2018 UFARS Manual Chapter 4, Finance. We updated the UFARS Finance Code and Balance Sheet Combinations for FY 2019 at the end of Chapter 4, Finance.
5/22/2019

11. FY 2019 UFARS Balance Sheet Code Update
For FY 2019, UFARS Balance Sheet Code 445, Restricted/Reserved for Career and Technical Programs is deleted.
5/22/2019

12. FY 2019 UFARS Chapter 10 Updates
Finance Codes
Finance Codes – Many finance codes were updated in the Chapter 10 to reflect the object code changes below. The revised Chapter 10 version will be posted on the MDE website soon.
Removed Object Codes 890, Federal In-Kind Match Expenditure, and 891, TRA and PERA Special Funding Situations Pension Expense, where appropriate for several finance codes.
5/22/2019

13. FY 2019 UFARS Chapter 10 Updates
Finance Codes 802/902 Delete Finance Codes 884 Delete Finance Code 885/985 Delete Finance Codes 887/987 Delete Finance Codes 888/988 Delete Finance Codes
5/22/2019

14. FY 2019 UFARS Chapter 13 Update
UFARS Chapter 13 Food Service section has been updated. We are currently working on the transportation and GASB sections as well.
5/22/2019

15. What is the Nonprogram Food Revenue Requirement?
Any food sold in the food service operation, other than a reimbursable meal, must generate at least the same proportion of revenue as it contributes to costs.
Nonprogram food revenue Cost of nonprogram food
Total Revenue Total food cost
So just what is the Nonprogram Food Revenue Requirement?
Section 206 of the Healthy Hunger Free Kids Act requires that “Any food sold in the food service operation, other than a reimbursable meal, must generate at least the same proportion of revenue as it contributes to costs.” The purpose is to ensure the nonprogram food sales are not being subsidized by funds intended to subsidize their program meals. At first glance, you may think – of course I’m compliant – I always charge more than what the item costs. However, that’s not always the case because we are looking at ratios, not just revenue and expense.
The process to assess compliance involves the equation shown here; the ratio of nonprogram food revenue to total revenue must be greater than or equal to the cost of nonprogram food to total food cost. Compliance with this provision is required, and the calculation must be performed at least annually - so our intention here today is to give you a basic understanding and some tools to help you in the process.
So in order to assess compliance with the regulation, you must have these four data points.
Nonprogram food revenue
Total food revenue
Cost of nonprogram food
Total food cost
5/22/2019

16. MDE Food and Nutrition Services Assessing Compliance through Proper Allocation
Finance
(Program)
Source
(Revenue)
Object
(Expense)
701 NSLP
300 – State Reimb.
471 – Federal Reimb.
472 – Federal Reimb.
601 – Student Sales
490 – Food
495 - Milk
702 – After-School Snack Program
703 – Special Milk & K-Milk Program
475 – Federal Reimb.
705 – School Breakfast Program
476 – Federal Reimb.
706 - FFVP
707 – Ala Carte
(Non-Program)
606 – Adult Sales
608 – Special Food Sales
709 - SFSP
479 – Federal Reimb.
Green Purple
Red Blue ≥
Now let’s look at how proper allocation will allow you to easily assess compliance with the Nonprogram Food Revenue Requirement.
This may be a review for some of you but it bears mentioning since here’s where we get our four data points.
The Finance Code is where each program is defined. Finance Code 707 is reserved for nonprogram revenue and expense.
The Source Code refers to revenue and by definition there is a clear distinction between program and nonprogram revenue using these codes.
The last column are the Object Codes we use for all Food and Milk but we all know by now, food and milk can be program or nonprogram.
So here is where, if we allocate revenue and expense to the proper programs using the proper Source and Object Codes, we have our four data points to assess compliance with the Nonprogram Food Revenue Requirement.
5/22/2019

17. Nonprogram Food Equation Component Definitions:
Nonprogram Food Revenue - refers to all funds accumulated to the school food service account associated with the sale of nonprogram foods in the above definition which includes food costs associated with adult meals.
Total Revenue - refers to all funds accumulated to the school food service account.
Cost of Nonprogram Food - refers to the amount paid for food sold in a participating school other than a reimbursable meal and is purchased using funds from the school food service account of the school.  This is a broad definition and includes beverages, a la carte foods, and any extra reimbursable foods that are sold such as an extra slice of pizza or carton of milk.
Total Food Cost - refers to the total amount paid for food for both reimbursable meals and nonprogram food purchased with the school food service account.
5/22/2019

18. Nonprogram Food Nonprogram Food Revenue
The UFARS Source Codes that may be used to identify sales within a program are:
601 Student Sales – sales to students can be either program or nonprogram
606 Adult Sales – all adult sales are considered nonprogram
608 Special Function Food Sales – all special function (catering) sales are considered nonprogram
In the event of Student Sales, it is the Finance Code that identifies whether or not the sale is program or nonprogram. If the student sale is a reimbursable meal, it is considered a program sale and must be recorded in either Finance 701 or Finance 705. If the student sale is not a reimbursable meal, it is considered a nonprogram sale and must be recorded in Finance 707.
5/22/2019

19. Nonprogram Food Cost of Nonprogram Food
The UFARS Object Codes that may be used to identify food costs within a program are:
490 Food – all food costs associated with all programs
495 Milk – all milk costs associated with all programs
UFARS does not allow for a dedicated Object Code to identify the cost of nonprogram foods, so in order to accurately allocate these costs, the Finance Code 707 must be used for all food that is associated with nonprogram sales.
Example: Adult Lunch Meal Sales and associated food costs
Revenue 02-XXX
Expense 02-XXX
We updated Finance Code 707 definition and Chapter 13 – page 6
5/22/2019

20. FY 2019 and FY 2020 UFARS Coding Guidance
5/22/2019

21. FY 2019 and FY 2020 UFARS Program Code
Program Code 200 is for Voluntary Prekindergarten (VPK).
Program Code 584 for School Readiness Plus (SR Plus).
A district or charter school must have an MDE approved program to use program codes 200 and 584.
There are many ways to code VPK and SR Plus UFARS coding. MN Statutes did not require either program to set aside unspent dollars, therefore, no finance codes or restricted/reserved codes were created.  When a district/charter school accesses VPK and SR Plus funding, the expenditure code is Finance Code 000 with the appropriate program code (200 or 584).  However, when a district/charter school chooses to fund a VPK or SR Plus student that is not wholly funded by the VPK or the SR Plus funds, the district/charter school may use the following funds to supplement the VPK or SR Plus funds:
Basic Skills funds, Finance Code 317, when appropriate;
School Readiness funds, Finance Code 344;
and Early Learning Scholarships – Pathways I and II, Finance Codes 338 and 337 respectively.  
A district/charter school should use Fund 01 when there is no fee to the parent. A district/charter school should use Fund 04 if the district/charter school is collecting a fee.
MDE Early Learning staff are working on a budget/programming spreadsheet that will help districts/charter schools determine the funding and allowed expenditures related to VPK/SR Plus/School Readiness/Pathways, etc.
The MDE Learning staff has a few districts currently piloting the budget spreadsheet.
5/22/2019

22. FY 2019 and FY 2020 UFARS Finance Codes
Finance Code 000 PBIS Grants State PBIS Grants use Finance Code 000 with Source Code 370. You can track the expenditures locally with a crosswalk. Finance Code 425/625 and 429/629 Federal CEIS Grants In-state travel, Object Code 366, and Out of State Travel, Object Code 368, will be allowed as long as the travel is approved by the MDE program area. NOTE: MDE Title staff asked us to mention you need to make at least 2 SERVS draws through out the year.
It appears that districts/charter schools do not need the money (cash), when the SERVS draws are not completed at least a couple of times per year.
5/22/2019

23. Finance Codes 175 and 176
For UFARS Finance Code 175, Title VII-Impact Aid, and Finance Code 176, Payments in Lieu of Taxes, please use Source Code 019, Miscellaneous Tax Revenues paid by County. Do not use Source Code 506, Impact Aid, since this code is to record revenue received directly from federal sources.
5/22/2019

24. Special Education Litigation
Per Minnesota Statutes Section 125A.75 Subdivision 9, MDE must publish a Special Education (SPED) Litigation cost report every year. This report includes the list of districts and the expenditures recorded in Object Code 306, Special Education Litigation Costs. During the past legislative session, the amounts were questioned as many districts reported small amounts or $0. MDE contacted a sample of districts and found that many were using in-house attorneys or retainers and were not breaking out SPED litigation costs.
306 Special Education Litigation Costs
Include all special education expenditures incurred for time spent by legal counsel in consideration of litigation, during litigation and in post-litigation work, including appeals and discussions regarding potential appeals. Costs should include the legal fees associated with a request for a due process hearing whether or not it settles the issue, and any expense incurred when seeking counsel in consideration of filing. Districts using this code for special education cases must use Program Code 400 with Finance Code 000 for these expenditures.
5/22/2019

25. Object Codes 393 and 394
393 Special Education and Transition Programs for Children with Disability Contracted Services For special instruction and services provided to a pupil or parent on the pupils behalf, by contracting with public, private or voluntary agencies other than school districts. The student is placed elsewhere and is not receiving the services at the district. The corresponding entry in SEDRA is ‘C’. Transition Programs for Children with a Disability Usage: Expenditures for transition programs for children with disabilities provided by a contract approved by the commissioner with public, private or voluntary agencies other than a Minnesota school district or cooperative center, in place of programs provided by the district. 394 Payments for Educational Purposes to Other Agencies (non-school districts) Includes payments made for students to any other public or private agencies (other than school districts) for tuition, PSEO tuition, community services and capital expenditures. This object code applies when the district brings in contracted personnel to serve in your district (not just for the students). The corresponding entry in SEDRA is ‘B’. Federal Program Usage: Includes costs for supplemental services for needs improvement schools. Transition Programs for Children with a Disability Usage: Expenditures for transition programs for children with disabilities provided by a contract approved by the commissioner with public, private or voluntary agencies other than an Minnesota school district or cooperative center, that are supplementary to a full educational program provided by the district.
There was a lot of confusion surrounding these codes. The definitions have been “cleaned up” to clarify when to use Object Code 393 and Object Code 394.
5/22/2019

26. Object Codes 505 and 506
Reminder that these object codes were added a few years ago. MDE Federal staff wants to ensure these codes are used appropriately.
505 Capitalized Non-Instructional Technology Software
Record expenditures for purchased software used for non-instructional purposes that meet the capitalization threshold. Software having a useful life of more than one year and per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the LEA for financial statement purposes, or $5,000. Please refer to Object Code 405 for Non-Instructional Software License Agreements and Object Code 555 for Capitalized Non-Instructional Technology Hardware.
506 Capitalized Instructional Technology Software
Expenditures for purchased software used for instructional purposes that meet the capitalization threshold. Software having a useful life of more than one year and per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the LEA for financial statement purposes, or $5,000. Please refer to Object Code 406 for Instructional Software License Agreements and Object Code 556 for Capitalized Instructional Technology Hardware.
5/22/2019

27. FY 2019 TRA and PERA Special Funding Situations – GASB #68
Source Code 397 TRA and PERA Special Funding Situations Revenue
Record the support received from the State of Minnesota (as a nonemployer contributing entity) for TRA special funding situation per GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No See Object code 891 for TRA Special Funding Situations Pension Expense.
Object Code 891 TRA and PERA Special Funding Situations Pension Expense
Record the additional pension expense related to the support received from the State of Minnesota (as a nonemployer contributing entity) for TRA and PERA special funding situations per GASB statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. See Source Code 397 for TRA and PERA Special Funding Situations Revenue.
5/22/2019

28. FY 2019 TRA and PERA Special Funding Situation – GASB #68
TRA and PERA will supply the calculations to the school districts, charter schools, entities, etc. for FY Reminder: to determine the FY 2019 Special Funding Situation amount, there must be adjustments made to the calculations.
Please work with your auditors on the calculation and determination of whether or not your entity must record the amounts to Source Code 397 and Object Code 891.
5/22/2019

29. Capitalized Interest in Bonded Debt and Levy
Some districts have passed bonds that include capitalized interest in the debt issue.
The district needs to move the amount of interest from Building Construction Fund, Fund 06, to Debt Service, Fund 07, where the interest payment will be paid.
The closing account in Fund 07 is , Restricted Fund Balance, NOT , Restricted/Reserved for Bond Refunding.
This entry will affect the Debt Excess calculation for the following year’s levy. Therefore, the district must send a request to Lonn Moe, to retain the debt excess to allow the district to make the interest only payments. The district will need to make a similar request for each year the capitalized interest is in
5/22/2019

30. Concessions Revenue and Expenditures
Districts and other entities that have concessions revenue and expenditures should code appropriately as stated below. Source Code 620, Sales of Materials from Revenue-Producing Activities, should be used to record the revenue generated from the sale of goods and services under the control of the board of education. Exclude as revenue any sales taxes collected applicable to such sales. Sales taxes are held until paid in the Balance Sheet Account 212, Due to Other Governmental Units. Source Code 619, Cost of Materials for Revenue-Producing Activities (Contra Revenue), should be used to record the cost of materials that were purchased for the purpose of (a) producing an object for sale or (b) for reselling of the material at a profit. Example (a) building a house, an art work or a storage shed Example (b) fundraising by selling candy concessions stands school stores vending machines
There have been a few questions regarding when there is a large item, such as a shed or a house that does not sell in the same fiscal year as the expenditures. Set up the receivable for what your minimum sale price will be and make sure to net taxes.
5/22/2019

31. LFTM Levy Flow-Through Revenue Coding
The UFARS coding regarding LTFM levy that flows-through to Co-ops or Intermediates is as follows:
The District should code the revenue to Source Code 001, NO finance code.
The Co-op or Intermediate should invoice the District for the portion owed the Co-op.
The District should code the Co-op or Intermediate invoice to Object Code 390, NO finance code.
The Co-op or Intermediate should code the revenue to Source Code 021 with an LTFM Finance Code and then code their expenditures to the appropriate LTFM Finance Codes.
5/22/2019

32. Finance Code 796, Health Benefits
Finance Code 796, Health Benefits (Fund 01, 02 and/or 4):
Record expenditures only for providing health insurance and unreimbursed medical expenditures required by the collective bargaining agreement in effect on March 30, 1992, for employees who retired before July 1, If the district has a sunset clause in their current bargaining agreement(s), the district should also record expenditures for providing health insurance and unreimbursed medical expenditures required by the collective bargaining agreement in effect on March 30, 1992, for employees who retired between July 1, 1992, and June 30, 1998.
The health benefits levy authority will be adjusted for this actual expenditure data. OPEB costs may qualify for levy authority under the health benefits levy, annual OPEB levy, various severance levies, or OPEB bonding authority. The district can receive levy revenue only once for any specific cost. If levy authority is received under a provision other than the health benefits levy for the costs described above, these costs should not be coded to Finance Code 796 (Minn. Stat. § 126C.41).
There have been many districts that have miscoded this in the past couple of years, please make sure you truly have Finance Code 796 or there will be negative levy adjustments.
5/22/2019

33. Finance Code 798, OPEB Pay-As-You-Go Levy
Finance Code 798, OPEB Pay-As-You-Go Levy (Fund 01, 02 and/or 4):
Record levy revenue under the authority of Minnesota Statutes, section 126C.41, subdivision 2(b), and related annual disbursements for other postemployment benefit (OPEB) costs, including the implicit rate subsidy, for retired employees under qualifying contracts, not funded with another levy source. Use only with Object Code 291. Refer to Chapter 13 for additional OPEB accounting instructions.
The OPEB pay-as-you-go Levy authority will be adjusted for actual expenditure data. OPEB costs may qualify for levy authority under the health benefits levy, annual OPEB levy, various severance levies, or OPEB bonding authority. The district can receive levy revenue only once for any specific cost. If levy authority is received under a provision other than the OPEB pay- as-you-go levy for the costs described above, these costs should not be coded Finance Code (Minn. Stat. § 126C.41, subd. 2(b).
There have been many districts that have miscoded this in the past couple of years, please make sure you truly have Finance Code 798 or there will be negative levy adjustments.
5/22/2019

34. FY 2020 GASB 84 Update
5/22/2019

35. FY 2020 UFARS GASB 84 Update Overview of GASB Sub Committee
On 11/20/18, the GASB subcommittee had a conference call with Lisa Parker, GASB Senior Project Manager, regarding GASB 84, Fiduciary Activities. The subcommittee was concerned whether student activities not under board control are considered as fiduciary activities or not. Lisa walked us through a series of questions and scenarios and we determined that student activities not under board control would not be a fiduciary activity due to administrative involvement. The end result is that all student activities will need to move under board control for FY 2020 for the June 30, 2020 audit. Therefore, all student activities will need to move to Fund 01, General Fund.
We have proposed legislation to update M.S. §123B.49, Extracurricular Activities; insurance, to align with GASB 84.
5/22/2019

36. FY 2020 UFARS GASB 84 Update Scenarios overview
On 11/20/18, the GASB subcommittee had a conference call with Lisa Parker, GASB Senior Project Manager, regarding GASB 84, Fiduciary Activities. The following slides are the scenarios that we discussed to determine that student activities are not Fiduciary Activities.
The determination for the following scenarios is based upon whether or not there is administrative involvement.
5/22/2019

37. FY 2020 UFARS GASB 84 Update
Lisa Parker walked the GASB subcommittee through numerous examples. All scenarios are based on the premise of who is responsible for establishing specific guidelines on how the money can be spent.
1st Scenario: The club members establish how the funds are spent. In this scenario there is not administrative involvement.
2nd Scenario: Parents of the club members establish specifically how resources are spent. The school does not have administrative involvement. Parents are considered to be the representatives of the beneficiaries.
5/22/2019

38. FY 2020 UFARS GASB 84 Update
3rd Scenario: There is no school board or administrative policy related to how the club activities spend resources. Disbursements from the club(s) are only approved by a faculty advisor(s) who is/are representing the district. The approval, rejection or modification is strictly at the discretion of the advisor. The district does have administrative involvement, since the district’s role would be substantive. The faculty advisor’s approval is more than just a formality. “Substance over formality.”
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39. FY 2020 UFARS GASB 84 Update
4th Scenario: The school board establishes and approves a policy related to the receipts, disbursement and holding of funds that are not legally separate from the school district. The policy includes specific guidelines for how the funds can be spent. In this case there is administrative involvement. The role is substantive because the school board establishes a policy to determine how funds are spent.
5/22/2019

40. FY 2020 UFARS GASB 84 Update
5th Scenario: The school board has a policy that only addresses the approved account signers. The policy does not provide specific guidelines on how money is spent, only general statements and prohibitions such as illegal spending. In this instance, there is no administrative involvement. If there are general guidelines then administrative involvement is not considered substantive.
6th Scenario: If there is an administrative policy with specific guidelines for expenditures, it is determined there is administrative involvement.
5/22/2019

41. FY 2020 UFARS GASB 84 Update
7th Scenario: A school board is responsible for approving the member fees. This is considered administrative involvement since establishing guidelines for raising money is the same concept as guidelines for spending money.
8th Scenario: The MAFA manual provides specific guidance on how funds should be spent. This is considered administrative involvement.
5/22/2019

42. FY 2020 UFARS GASB 84 Update
The conclusion is that all student activities (under board control and not under board control) belong in the general fund. Student activities not under board control are not considered to be special revenue funds because they do not represent a single stream of revenue.
The GASB subcommittee determined that student activities within the general fund would need to be reserved so the student activity funds are not comingled.
The effective date is July 1, 2019 for FY 2020.
5/22/2019

43. FY 2020 UFARS GASB 84 Update
We are reviewing the accounting treatments for the following activities: Fiscal Hosts, Cooperatives, Joint Powers, Payroll Withholdings (Flex Accounts), scholarships and other.
The Agency Fund will be updated to reflect GASB 84, Fiduciary Activities.
5/22/2019

44. FY 2019 Fund Balance Reminders
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45. FY 2019 H&S Fund Balance Adjustments
406 – Restricted/Reserved for Health and Safety
The June 30, 2018 ending fund balance in Balance Sheet Account 406 will continue to have levy adjustments applied through June 30, A positive or negative balance at June 30, must be transferred to the General Fund 01 Unassigned Balance Sheet Account (Minn. Stat.§ 123B.79, Subd. 9 – Permanent Fund Transfers)
Please contact Sarah Miller at or if you have any questions about Health and Safety
5/22/2019

46. FY 2019 and Subsequent Years Long-Term Facilities Maintenance
2017 Minnesota Statutes 123B.595 – Long-Term Facilities Maintenance
Replaced revenue from Minnesota Statutes:
123B.591 Deferred Maintenance - repealed
123B.59 Alternative Facilities – repealed
Repealed certain sections – Health and Safety Program not replaced
123B.57 Health and Safety – repealed sections, but subdivision 6 and subdivision 8 remain in effect. Health and Safety program was not replaced but now included within Long-Term Facilities Maintenance, Balance Sheet Code 467.
5/22/2019

47. FY 2019 Alternative Facilities Fund Balance
MDE > Districts, Schools and Educators > Business and Finance > School Finance > Financial Management
Discuss the bottom paragraph of the memo. Fund Balances from FY 2016 Restricted/Reserved for Alt Facilities, Balance Sheet Code 409, must have been transferred to the Building Construction Fund, Fund 06, Restricted/Reserved for Long-Term Facilities Maintenance (LTFM), Balance Sheet Code 467.
5/22/2019

48. MDE Food and Nutrition Services Fund Balance
Deficits in Food Service Fund must be handled according to Minnesota Statutes 124D.111.
124D.111(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit is not eliminated by revenues from food service operations in the next fiscal year, then the deficit must be eliminated by a permanent fund transfer from the general fund at the end of that second fiscal year. However, if a district contracts with a food service management company during the period in which the deficit has accrued, the deficit must be eliminated by a payment from the food service management company. (g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund for up to three years without making the permanent transfer if the district submits to the commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at the end of the third fiscal year.
If the vended meal company provides only meals at a contracted per meal price, then it is the district’s responsibility to negotiate the contracted meal price, monitor reimbursement rates and set the price charged to students that do not qualify for meal benefits. If there is not enough revenue generated to cover expenses, it is the district that is responsible for the deficit. 
5/22/2019

49. FY 2019 Fund Balances Reminders
Restricted/Reserved for Career and Technical Programs, Balance Sheet Account 445, should not have a reserve. The revenue is only 35% of the approved expenditures and the account is not allowed to go into deficit. Be careful not to transfer expenditures out of Career and Technical Programs, since the 35% is based on Finance Code 830 actual expenditures. As of today, there were 3 districts with a positive fund balance at 6/30/2018.
For FY 2019, Restricted/Reserved for Career and Technical Programs, Balance Sheet Account 445, is deleted.
There are many districts with negatives as of 9/28/18, but there is still plenty of time to make adjustments.
5/22/2019

50. FY 2019 Fund Balances Reminders
Restricted/Reserved for Bond Refunding, Balance Sheet Account 425, must be used for Refunding Bonds only.
If you do not use this account for the refunding bonds, then the bond proceeds are calculated into debt excess and your district will receive less levy proceeds than you need to make the debt payments.
5/22/2019

51. FY 2019 Fund Balances Reminders
Achievement and Integration revenue (aid and levy) and expenditures should be coded to Finance Code 313.
Incentive revenue should be coded to Finance Code 313 and expenditures should be coded to Finance Code The incentive revenue calculation is tied to Achievement and Integration. See Minnesota Statutes 124D.862, Subd. 2.
The revenue calculation is based upon actual student data and actual UFARS expenditure data, the lessor of the two, which is detailed on the Integration Revenue Report found under Aid Entitlements on the mfrs. Balance Sheet Account 448 is not allowed to have a carryover balance or have a negative balance. Therefore, if a School District has a balance, the School District must have an off setting negative receipt, so the balance is $0 for UFARS.
5/22/2019

52. UFARS Data Submissions
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53. FY 2019 UFARS Data Submission Deadlines
FY 2019 Preliminary Unaudited UFARS (September 15, 2019). The statutory deadline falls on a Sunday; therefore, submissions are timely if submitted on the next succeeding day which is not a Saturday, Sunday or legal holiday (Minn. Stat. §474A.025). Therefore, submissions are due by Monday, September 16, FY 2019 Final Audited UFARS (November 30, 2019) The statutory deadline falls on a Saturday; therefore, submissions are timely if submitted on the next succeeding day which is not a Saturday, Sunday or legal holiday (Minn. Stat. §474A.025). Therefore, submissions are due by Monday, December 2, FY 2019 Fiscal Compliance Table (November 30, 2019) – (see above for extension) FY 2019 Audit Report (December 31, 2019)
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54. UFARS Data Submissions
Districts, Schools and Educators, locate the “Business and Finance” section
5/22/2019

55. External User Access Recertification
MDE Website – MDE > Districts, Schools and Educators > Data Submissions > External User Access Recertification
Contact: Nicki Cha at
Step 1 – board minutes designate the Identified Official with Authority to authorize user access to MDE secure websites for LEA or organization. Step 2 to MDE IOWA and board minutes. Step 3 –launch External User Access Recertification System. Step 4 – MDE will match information to approved access.
5/22/2019

56. UFARS Data Submissions
MDE > Districts, Schools and Educators > Business and Finance > Data Submissions > UFARS File Upload
Contact: Deb Meier at or
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57. Sign up for MDE email alerts
Sign up for alerts in the financial management area. You need to sign up in each area for specific alerts.
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58. UFARS Turnaround Reports Review
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59. UFARS Turnaround Reports Review
MDE > Data Center > Data Reports and Analytics
Reminder – “Twitter” – “Quick Links” – “Contact MDE” shown below each MDE webpage for easy reference.
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60. UFARS Turnaround Reports Review
Go to the MFR
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61. UFARS Turnaround Reports Review
MDE > Data Center > Data Reports and Analytics
Discuss that all 10 reports have different uses. The Expenditures by Finance Code Report may help with determining the reason why EDRS and UFARS amounts do not match. The General Ledger Summary report is useful when matching up the prior year balances. Remind them they can pull last year’s data by entering in in the Year. This is especially useful if prior year’s ending balance does not equal this year’s beginning balance. *All 10 reports should show an updated run date, if only 1 is showing an update, then the UFARS submission failed.
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62. UFARS Turnaround Reports Review
MDE > Data Center > Data Reports and Analytics
UFARS Data Submission/Error Report may say Updated all records, but you still may have errors on the UFARS Turnaround Report. It is very important to look at both of the reports.
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63. UFARS Turnaround Reports Review
MDE > Data Center > Data Reports and Analytics
UFARS Data Submission/Error Report may state “OK; Updated all records”, but you still may have errors on the UFARS Turnaround Report. It is very important to look at both reports.
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64. UFARS Turnaround Reports Review
School Finance Award is based upon the following – related to the UFARS Turnaround Reports:
MDE receiving the unaudited UFARS submission by September 15.
MDE receiving the audited UFARS submission by November 30 – the final submission must have NO ERRORS.
There are many other determining factors for the School Finance Award, the criteria is listed at the beginning of the award recipients for FY 2018, go to:
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65. MDE Website
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66. MDE Website
The MDE Website address has changed. The new website address is education.mn.gov
The website is currently redirecting you, but we are not sure how long this will occur.
Please go to education.mn.gov and update your bookmarks.
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67. MDE Website - About MDE
Go into screen Calendar, Contact Us.
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68. MDE Website – MDE Calendar
About MDE > Calendar
Future UFARS 101 Trainings
UFARS 101 training will introduce Uniform Financial Accounting and Reporting Standards (UFARS) and review: A) Chart of Accounts; B) UFARS System Uses; C) Dimension Descriptions; D) Legislative Requirements, and review basic accounting concepts and financial reporting for Minnesota schools. The training will also include expenditures/revenues exercises and website navigation.
Registration information for future UFARS 101 workshops are posted on the MDE calendar webpage or by following About MDE > Calendar. Scheduled dates for future registrations are:
June 18, 2019
July 18, 2019
August 22, 2019
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69. MDE Website – District Reporting Calendar
MDE > Districts, Schools and Educators > Business and Finance > Data Submissions > District Reporting Calendar
District Reporting Calendar – Excellent tool for reporting and data entry periods during the fiscal year. Good “handout” material.
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70. MDE Website – Data Reporting Calendar
NEW “Reporting Calendar for Districts” looks like this – Month Due; Date Due; Report Name; Description and you can “click” into the “Forms page”; Questions? – “click” into the or “click” into the “Report Name” itself as indicated in the blue hyperlink.
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71. MDE Website UFARS The UFARS Manual for prior years can be located at:
then click on Archive in the bottom right corner
The current UFARS Manual (FY 2019) is being posted to the MDE website one chapter at a time as MDE Communications makes each chapter accessible.
5/22/2019

72. MDE Website – MDE-ORG
Districts, Charter Schools and organizations working with the Minnesota Department of Education need to update and maintain current data for their district and school information in a timely manner or within 90 days of an organizational change. The updates are made in the District and School Site Verification System (by the designated person or IOWA at your district or charter school) and are displayed in the MDE Organization Reference Glossary (MDE-ORG). To view see MDE website: MDE > About MDE > Schools and Organizations (MDE-ORG). Changes include, but are not limited to, the following: administrators, district and site level contacts, address information and organizational changes in operational status, grade level, school classification or district/school or organization name changes. The appointed Site Verification Coordinator at the organization has access to the secure District and School Site Verification System and can update contact and address information or request any changes required by the organizational changes as they occur within the school year. MDE staff use MDE-ORG for many purposes, so please ensure this is up to date.
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73. MDE Website – MDE-ORG
The Identified Official with Authority is the contact to update your MDE-ORG contacts.
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74. UFARS Overview Summary
Questions?
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75. MDE Financial Management Contacts
For UFARS Accounting, Manual and Chapter 10 Grid questions, contact the UFARS Helpdesk
Contact the MDE IT-Helpdesk for technical questions or problems with the MDE website
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76. MDE Financial Management Contacts
Jenny Charles Deb Meier Charter School Lease Aid, Federal Reporting & UFARS Accounting, Manual & Training, Financial Mgmt Training, MOE, Financial Data Requests Education Finance Specialist Education Finance Specialist Division of School Finance Division of School Finance or or Pam Sanders Molly Koppes Consolidated Financial and Profile Reports, Financial Mgmt Training, Credit CPA Financial Audits, MDE Single Audit, Enhancement, Statutory Operating Indirect Cost Reporting Debt (SOD) or or Mary Weigel Financial Management/Reporting Supervisor Division of School Finance or
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77. MDE Special Education Contacts
Paul Ferrin Denise Berger Special Education, Data & Analysis State Aid Calculations/MOE/SERVS Supervisor Beth Tomlinson Jill Bemis Electronic Data & Reporting Systems (EDRS) State Aid/Vehicle Purchases/Special Pupils Federal Allocation/Application Approval/MOE Michelle Jones Dave Lobejko Tuition Billing Adjustment Calculations Data Analytics Specialist Michelle Carey ListServ Distribution/Non-Public Fall Report Send all inquiries to
5/22/2019

78. MARSS Student Contacts
Kelly Garvey Student Transportation Division of School Finance Kelly Wosika Student Accounting Sharon Peck Supervisor, Student Accounting
Jeanne Krile PSEO, ADM/EDRS Reporting Division of School Finance Marilynn Loehr MARSS Coordinator
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79. Other Contacts…
SERVS Financial How to gain access and utilize SERVS Financial – Error messages and malfunctions when using SERVS – MARSS Student Reporting Minnesota Automated Student Reporting System (MARSS) contact:
Title Programs
Title Programs –
Special Education
Special Education Funds –
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80. Deb Meier and Molly Koppes
Thank you!
Deb Meier and Molly Koppes or or
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